Re: [CANSLIM] sell rules help

From: "Tom Worley" <stkguru@bellsouth.net>
Subject: Re: [CANSLIM] sell rules help
Date: Sat, 31 Aug 2002 07:50:15 -0400

Next Article (by Author): Re: [CANSLIM] 9/11 anniversary Warren Keuffel
Previous Article (by Author): Re: [CANSLIM] 9/11 anniversary "Tom Worley"
Articles sorted by: [Date] [Author] [Subject]

Mike,

One thing that WON has always emphasized is learning to take profits.
There's nothing wrong in it, so long as you don't beat yourself up later if
it goes higher. In particular, for newcomers to CANSLIM, it is a learning
process as well as a discipline. For this reason, he suggests taking profits
at the 20% point regardless of what you think the stock may later do. Simple
rule, designed just to teach you to take a profit, something many investors
never learn.

The 8% stop loss rule is similar, simple, easy to follow, doesn't need any
thought, just do it.

Once you learn these two most basic rules, and can maintain such discipline,
you are ready to advance on to more careful examination of the chart pattern
in order to refine these rules, and start listening to what the stock is
trying to tell you. That's when you find yourself able to keep part or all
of a stock that eventually advances 50 or 100%. Or refine your stop loss
rule and get out with only a 3% or 5% loss, instead of letting it go all the
way to 8%.

The key is learning to make a decision, then implement it, and even if it
should later prove to be a bad decision, understand that indecision is far
worse.

- ----- Original Message -----
From: <michael_niemotka@baxter.com>
To: <canslim@lists.xmission.com>
Sent: Friday, August 30, 2002 10:13 AM
Subject: [CANSLIM] sell rules help


Hi all,

I know I asked about COCO yesterday, but now as of this morning, I am up
20% , and am thinking hard about selling at least some to lock in that kind
of profit.  However, it has grown to this point after only a week, so is
that a sign of real strength, and therefore does it need to be held for at
least 8 weeks?

Help!

Thanks

Mike


Mike Niemotka , PE
Sr. Principal Engineer
Baxter Healthcare Corporation
Route 120 & Wilson Road
Round Lake, IL 60073
Tel (847) 270-4075
Fax (847) 270-4525
michael_niemotka@baxter.com



- -
- -To subscribe/unsubscribe, email "majordomo@xmission.com"
- -In the email body, write "subscribe canslim" or
- -"unsubscribe canslim".  Do not use quotes in your email.




- -
- -To subscribe/unsubscribe, email "majordomo@xmission.com"
- -In the email body, write "subscribe canslim" or
- -"unsubscribe canslim".  Do not use quotes in your email.

Go to Jeff Salisbury LWGate Home Page.